Gold prices fall to Rs 7,335

Gold prices crashed by another Rs 130 at Rs 7,335 per 10 gram on the bullion market today on sustained selling by stockists and speculators largely fueled by a weakening trend in Asian markets.

Silver too extended its weakness on poor demand from jewellery fabricators against stockists' offerings.

In Asian trading gold fell after dollar yesterday climbed the most in five months against the euro and the yen, reducing the appeal of the precious metal as an alternative investment to US assets.

Gold for immediate delivery fell as much as $2.30 to $489.95 in Asian markets. The domestic bullion market, which normally move with the international trend, turned equally weak for the second straight day.

Standard gold and ornaments lost another Rs 130 each at Rs 7,335 and Rs 7,185 per 10 gram respectively while sovereign remained flat at Rs 5,950 per piece of eight gram on little doing.

Silver also remained weak on selling pressure and lost further ground. Silver.999 ready and weekly-based delivery fell by Rs 175 and Rs 50 at Rs 12,425 and Rs 12,595 per kilo respectively.

However, silver coins were unchanged at Rs 16,900 for buying and Rs 17,000 for selling of 100 pieces.